Iran-China 25-Year Cooperation Document

11 m.   |  2022-02-07

O n January 13, Iranian Foreign Minister Amir-Abdollahian left for China, where he discussed with his counterpart the implementation of a 25-year Cooperation Document. It should be noted that the document caused a kind of a noise among the Iranians that “the country is being sold to China”. Those discussions and myths reactivated on the Internet against the background of the visit. Below, we will present what is really known about this document, how it was covered in the media and at what stage of implementation it is. 

Signing of the Cooperation Document

T he China-Iran 25-Year Cooperation Agreement was signed on March 27, 2021, during Chinese Foreign Minister’s visit to Tehran. However, the need for the document was first discussed back in 2016, during Chinese President Xi Jinping’s visit to Iran. 

The article 6 of the agreement adopted as a result of the meeting of the Presidents of the two countries stated: “Considering the strong will of the parties to develop relations between the two countries and considering the complementarity of economic capacities as well as the existing of various fields of cooperation in the fields of energy, infrastructure, industry, technology and other common fields the two sides agree to include the necessary consultations and negotiation on the agenda for signing a 25-year comprehensive cooperation agreement”.

Since 2016, until the very day of signing, the document went through a whirlwind of a long diplomatic work.

March 2016 - February 2019

The Iranian Foreign Ministry, in cooperation with other ministries and structures of the country developed a draft document.

February 21, 2019

During his visit to China, Iranian Parliament Speaker Ali Larijani stated that a preliminary version of the document would be ready in the near future. 

February 2019 -August 2019

Internal discussions on the document took place in Iran.

August 25, 2019

During his visit to China, Iranian Foreign Minister Mohammad Javad Zarif handed over the draft document to his Chinese counterpart.

March 2020

The Chinese side submitted the observations on the document.

May 2020

The text of the draft document and the conclusion of the Ministry of Foreign Affairs based on the observations of national structures was submitted to the country’s government for discussion in Iran.

June 23, 2020

The Iranian Government authorized the Foreign Ministry to start negotiations for signing a comprehensive cooperation program.

June 24, 2020

During a video meeting with the Chinese Foreign Ministry, the Iranian side presented Tehran’s observations on the changes proposed by the Chinese side in the draft.

August 2020

The second version of the draft document was submitted to the Chinese side.

October 10, 2020

During Zarif’s visit to China, various issues related to the document and its promotion were discussed.

February 2021

The Chinese side presented its observations on the second version of the project. 

March 11, 2021

Beijing stated that in case of completion of the draft version of the document, Chinese Foreign Minister is ready to leave for Iran and sign it. 

March 17, 2021

Iran’s highest authorities agreed to the signing of the document.

March 27, 2021

The document on comprehensive cooperation was signed. 

The document’s content 

T he information released by the Iranian Foreign Ministry on the document signed on March 21, 2021 noted, that it wasn’t an agreement but a “roadmap”, “an action plan”, which outlines prospects for relations between the two countries, and does not impose obligations on either side. 

According to the Iranian side, the document is based on mutual respect and win-win strategy. However, its content was never published. Only some clarifications were presented, of which we know the following:

  • The sides should increase consultations and cooperation in regional and international structures.
  • The sides should strengthen defense infrastructures, fight against terrorism, cooperation in various fields.
  • The sides should cooperate in the fields of oil, industry, mines, energy (renewable energy and so on), taking into account national sustainable development and environmental issues.  
  • The importance of Iran’s participation in the Chinese One Belt, One Road Initiative was stressed, to use the geopolitical and geoeconomics advantages.  
  • Cooperation in the fields of infrastructure, communication (railway, road, port, air), telecommunication, science and technology, education, health.
  • Facilitation of cooperation in financial-banking and customs fields, in the free economic-industrial zones, including the promotion of cooperation in the Makran beach.
  • Strengthening of cooperation in non-oil, especially agricultural and knowledge-based fields.
  • Facilitation of cooperation in the field of investment and financing economic projects.
  • Ensuring mutual recognition of the societies of the two countries through tourism, mass media and NGOs. Investments were also planned for the expansion of cultural cooperation. 
  • The document mentioned regional, international peace, stability and development goals. It isn’t aimed at any third party and it doesn’t seek to interfere in the internal affairs of the country.
  • The document is a roadmap for comprehensive cooperation between Iran and China, hence it doesn’t contain any agreement or commitment. 
  • There is no quantitative data on the prospects of cooperation in any part of the document, it doesn’t contain any special numbers, including on investments, financial or monetary resources. 
  • The management or operation of neither any area nor sector has been handed over to the other side based on the document. 

The last point, by the way, is very important just from the point of view of discussions in Iran: as it was mentioned, there were apocalyptic statements made about ceding Iran’s sovereignty to China. Through this point, however, the Iranian authorities assured that there is no such a danger.  

It should be noted that a few months before the signing of the document, a document appeared on the Internet, which was presented as a draft version of the 25-year comprehensive cooperation program. Its content coincides and doesn’t contradict the explanations provided by the Iranian authorities.  

The document refers to different international transit corridors, and unlike Turkey and Azerbaijan, there is no mention of Armenia. 

According to that document, it was emphasized in the section related to the One Belt, One Road Initiative, that the sides welcome multilateral cooperation with the participation of neighboring or third countries.   

“Taking into account the common interests, to ensure active participation in the South-North (Chabahar Port – Central Asia) and South-West (Chabahar – Bandar Abbas -Turkey-Azerbaijan) corridors through consultation and cooperation”, it was noted in the document.

Based on the document, the implementation of Chinese investments in infrastructure projects, for the establishment of industrial settlements in the free economic zones (Jashm, Maku, Arvand), in oil industry and in a number of other fields, the development of Iran’s oil fields, the development of mechanisms for sustainable oil purchases, military education and development of cooperation in industry fields are encouraged.  

Coverage of the document in the media

In general, the signing of the document was presented positively in the media belonging to the two main political camps in Iran, the reformists and the conservatives. The propaganda against the document was carried out especially by the foreign media and those who are against the Islamic regime in Iran. On the positive side, the document was presented in the Iranian media as a good opportunity to neutralize the impact of US sanctions, to attract investment in Iran, to develop infrastructure, and to boost industry. At the same time, the need not to harm the local producer was stressed. The signing of the document was also interpreted as an indicator of Iran’s inclination to the Eastern burden. 

The need to develop corridors passing through Iran was highlighted regarding to the signing of the document. In this context, there was also an expert opinion, that Chinese investment could be attracted for the construction of the Rasht-Astara railway, which is part of the North-South transit corridor (1,2). This is the railway, which will connect Iran with Azerbaijan, continuing to Russia and Europe. 

It was stressed that the launch of the Jolfa railway should be pursued and settle the transit problems with Turkmenistan, Turkey, Armenia and Azerbaijan using the opportunities of China. As an example, it was mentioned that if it was possible to provide communication with Europe through the Jolfa railway, perhaps there would be no need to build the Rasht-Astara railway. 

Foreign media reported some theses, that according to the document, Chinese troops will be stationed in Iran or that the southern islands of Iran will be handed over to China. These theses became widespread in Iranian society, contradicting the general positive assessments of the document by the Iranian authorities, the ruling political groups. Among the Iranians, the document was described as “the second Turkmenchay”. There were also organized protests against the signing of the document under the slogan “Iran is not for sale”.

There were also reports in the press that China will invest $280 billion in Iran’s oil and petrochemical industry and $129 billion in infrastructure development. However, as it was mentioned, according to the Iranian Foreign Ministry, there was no quantitative data in the document and no territory is handed over to the other side. 

New stage

A lthough Iran-China Cooperation Document was signed during the previous government of Iran, however the government led by the new President Ebrahim Raisi set the development of relations with China, including the implementation of the cooperation document as a priority. 

Despite that, no practical steps have been taken since the signing of the document in March 2021. In the meantime, however, there have been significant developments around and in Iran:

  • Negotiations to restore the Nuclear Deal started in Vienna in April.
  • The election of a new president and the formation of a government took place between June-August.  
  • The withdrawal of the US troops from Afghanistan and the Taliban’s coming to power in that country took place between August-September.
  • The Vienna nuclear talks resumed since the end of November.

The only change in Iran-China relations during that period was that the Iranian government agreed to open a Chinese consulate general in Bandar Abbas, Iran’s main southern road junction in late December.  

In January, Iranian Foreign Minister Amir-Abdollahian’s visit to China took place against the background of a relatively positive note. At the end of the visit, Abdollahian stated that they had agreed with the Chinese side to start the implementation of the 25-year cooperation document on January 14.

According to the Iranian Minister of Economy Ehsan Khandozi, Iran and China should reach specific agreements in each of the fields mentioned in document. According to Khandozi, in recent months, various ministries of Iran are involved in the development of those agreements and they will be signed in the near future.  

Generally, the implementation of the agreements based on the document can be an impetus for the Iranian economy, and the positive outcome of the Vienna talks and the lifting of the sanctions will open additional opportunities for Iran, in terms of both developing relations with China and the outside world. At the moment, however, the strategic document between Iran and China is only a confirmation of positive wishes.